US weekly initial jobless claims fall below 300,000 for first time in 19 months

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US weekly initial jobless claims fall below 300,000 for first time in 19 months

On Thursday, US Labour Department data had unveiled that the number of Americans filing for first-time state unemployment benefits fell below a 300,000-mark for the first time in more than a year and a half, vindicating analysts’ beliefs that a bitter sluggishness in job growth over a third quarter had been stemming from a chronic labour shortage rather than feeble labour demands.

On top of that, as US Labour Department data unmasked a second straight week of decline in weekly jobless claims, applications for initial unemployment benefits are now hovering in a so-called green-zone often contemplated as a sign of healthful labour market, however, the US labour market had still been vying to vent a way out of workers shortages alongside a global-scale supply chain constraint that is reportedly disrupting supplies of raw materials.

Other economic data released earlier in the day had revealed that the US PPI (Producer Prices Index), an average change in prices of goods and services that producers have to pay off as inputs, rose 0.5 per cent in September, illustrating a further hike in US inflation over coming months.

US weekly initial jobless claims fall to 19-months low

According to US Labour Department data, the number of Americans applying for state unemployment benefits for the first time in their lives dipped 36,000 to a seasonally adjusted 293,000 over the week that ended on October 9, the lowest since the onset of the pandemic outbreak back in March 2020, while continuing claims dropped 134,000 to 2.593 million.

Meanwhile, as the latest set of data would more likely put further pressure on US Federal Reserve to initiate a tapering of fiscal stimulus, a Chief US economist at High Frequency Economics in White Plains, New York, Rubeela Farooqi, said, “The data support the narrative that businesses are increasingly reluctant to let go of workers amid a severe supply shortage.

But it is still not clear if the expected supply surge that failed to materialize in August and September will appear going forward”.